Because eternally perfect protocols are impossible, as illustrated by Arrow's Impossibility Theorem and the Folk Theorems of Game Theory, the remedy is not a better static ruleset but a system that continually improves its protocols and smart contracts in reaction to market change.
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The impossibility of creating eternally perfect protocols, as illustrated by Arrow's Impossibility Theorem and the Folk Theorems of Game Theory, is addressed by a sys- tem which continually improves protocols and smart contracts to react to changes in the market.
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Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021), Consequences of the architecture, p. 8 https://ssrn.com/abstract=3782210 · source PDF
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Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210
extendskaal:claim:3402701-011 The Folk Theorems of game theory imply that no matter how complicated a stable coin protocol becomes, a powerf...
extendskaal:claim:3402701-036 The Folk Theorems of game theory prove that no protocol, however complex or well engineered, can eliminate cor...
extendskaal:claim:3782193-011 No set of written rules can be made complete: the Folk Theorems demonstrate that however rules are written, st...
extendskaal:claim:3402701-007 Good governance principles are crucial to every aspect of a long-term stable currency because markets inevitab...
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